India’s cabinet approved a ₹100 billion ($1.1B) government-backed venture capital fund-of-funds to deploy capital into startups via private VC managers.

Cabinet clearance moves the program from a budget announcement to an executable vehicle, enabling manager selection and capital commitments to start. The fund targets deep-tech and advanced manufacturing, increasing available early-stage and long-horizon financing as private funding rounds and deal counts have fallen. For founders, the approval expands a non-dilutive-to-the-market capital source that can extend runway and de-risk follow-on rounds; for VCs, it creates a new anchor-LP pool that can accelerate fund closes and concentrate capital in government-prioritized sectors.